EMR - Why Emerson Electric Shares Rose 16% in 2021
Automation and climate technologies company Emerson Electric (NYSE: EMR) just completed an unusual year, with the stock only gaining 15.7%. I write "only" because the S&P 500 index gained 27%, and it's somewhat surprising that Emerson underperformed the market, considering that it significantly beat its initial earnings guidance for its fiscal 2021 and has guided toward a 19% increase in earnings for its fiscal 2022.
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For reference, management started its fiscal 2021 (its fiscal years end on Sept. 30) expecting full-year underlying sales growth in the range of negative 1% to positive 2%. It actually came in at 5%. As a result, its adjusted earnings per share came in at $4.10, significantly ahead of the $3.45 it initially guided for on that metric.
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Why Emerson Electric Shares Rose 16% in 2021